Operating Expenses (Tables)

12 Months Ended

Dec. 31, 2019

Operating expenses for the years ended December 31, 2017, 2018 and 2019, are as follows:


(In millions of Korean won)	2017			2018			2019
Salaries and wages	￦	3,568,456		￦	3,845,842		￦	3,974,233
Depreciation		2,745,969			2,674,205			2,530,252
Depreciation of right-of-use assets		—			—			452,057
Amortization of intangible assets		618,533			607,527			656,611
Commissions		1,085,865			1,080,168			1,115,477
Interconnection charges		640,612			579,613			534,025
International interconnection fee		214,058			226,627			240,254
Purchase of inventories		4,053,693			4,414,094			4,453,820
Changes of inventories		(187,439	)		(432,607	)		282,957
Sales commission		2,201,778			1,942,841			2,315,731
Service cost		1,428,405			1,540,869			1,610,261
Utilities		323,313			323,411			332,816
Taxes and dues		279,574			285,131			276,815
Rent		448,772			460,377			193,357
Insurance premium		69,384			73,654			82,404
Installation fee		146,783			143,669			155,178
Advertising expenses		197,114			157,675			150,166
Research and development expenses		168,635			176,758			165,028
Card service cost		3,094,894			3,112,618			3,066,766
Others		1,379,438			1,122,718			1,290,807

Total	￦	22,477,837		￦	22,335,190		￦	23,879,015

Details of salaries and wages for the years ended December 31, 2017, 2018 and 2019, are as follows:


(In millions of Korean won)	2017		2018		2019
Short-term employee benefits	￦	3,297,944	￦	3,505,214	￦	3,663,337
Post-employment benefits(Defined benefit plan)		209,770		232,045		240,310
Post-employment benefits(Defined contribution plan)		45,936		48,210		57,170
Share-based payment		7,660		8,439		6,398
Others		6,949		51,934		7,018

Total	￦	3,568,259	￦	3,845,842	￦	3,974,233